INTERNSHIP PROJECT REPORT

Financial Analysis

Utopian Dreams Private Limited

(District-D)

Project Guide:
Mr. Mohit Sharma
Business Analyst

Submitted in partial fulfilment of the Master’s in Business Administration

program at TAPMI, Manipal by:

Pranay Mundada 22B147

21st July 2023
Batch: 2022-2024

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Certificate

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 Acknowledgment

I offer my sincere gratitude to Utopian Dreams’ District-D, Noida for giving me an

incredible opportunity to complete my internship in their organization. The immense
learning that I have received over the period of four months including my live project
has helped me hone my craft even further and I have learned a lot.

I would like to express immense gratitude towards Mr. Mohit Sharma who is a business
analyst at the company as well as my project head for his guidance, understanding,
encouragement, motivation, and support given throughout the tenure of my
internship and live-project. His expertise helped tremendously in delivering the best
possible results in an efficient manner during the internship.

I also thank Mr. Vikas Chand and Mr. Udit Garg who are the founders of the
organization for providing me with the valuable opportunity to work in their
company. I learnt quite a lot from them starting as early as the interview process.

I would also like to thank Prof. Salu Prasad (T.A. Pai Management Institute,
Manipal) for her valuable and timely guidance. Her eagerness to help throughout the
duration of the internship was extremely important and helped me make sure I did
not slack off at any time.

At last, but not the least, I am extremely grateful to T. A. Pai Management Institute,
for providing this opportunity to learn and for giving me a platform to succeed.

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 Executive Summary
DistrictD is the registered trademark of Utopian Dreams Private Limited founded in
2016. The company provides access to institutional investing resources and tools for its
subscribers. The company’s platform allows its users to perform various analysis on
large data sets and generate insights which are very easy to understand. This is done by
providing access to the relevant data, financial models, portfolio allocations and
analysis tool kit.

Purpose and Backdrop

The main purpose of the project was to update the financial models with the latest
financial and operational data released by the company. Also, I had to update the
financial data of the company at the company’s website. This all had to be done the
same day when the Quarter and Annual results of the companies were announced so
that our customers are always updated with the latest data.

Major Objectives of the Project

My major work revolved around updating the financial models so that my senior can
make a three-year forecast for that model. I also updated the quarterly results of the
companies for FY 22-23. My other deliverables included updating the balance sheet
and cash flow using historical data on the company’s website and excel database. All
this work had to be done on the same day when the company announced its results to
provide the latest data to our customers at the earliest.

Methodology Adopted

We were only allowed to source data from official sources. I used the BSE and the
Company’s website for the same. The major data was extracted from the quarterly and
annual reports, investor presentations, con calls and press releases. Microsoft Excel was
the handiest tool as the financial models were made on excel.

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Findings, Conclusions and Suggestions

The main finding for me during this internship was how data is very useful for
investing. If an investor receives right data in the right format and at the right time,
he/she can take excellent investing decisions and make maximum profits with less risk.
Our platform provided the clients with that data that too in graphical format so that it is
very easy to understand. We also provided with an option to change the forecast
according to the clients multiple and see the target price. This feature came very handy
for the investors who had a different perspective of growth for any given company.

Major Learnings from the Project

My major learning from the project is that if we process the data in the right way and
compare it with its peer companies, we can get some good companies to invest in. Also,
not only we have to look at the financial numbers, but we must also go through the con
calls and investor presentations to see the future growth and current earning
demographics. I also learned that though having a similar format, how companies in
different sectors provide their financials in different ways. I also learned the usage of
excel and its importance in a financial model.

Limitations of the Project

I was not given the task to create any companies financial model from scratch or to do
financial forecasting for any company. I think this was the biggest limitation of my
project. My work remained same for the whole two months to update the financial
models and financial data on the company’s website.

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SR.NO Table of Contents Pg. No

1 Certificate ii

2 Acknowledgement iii

3 Executive Summary iv

4 Table of Contents vi

5 List of Tables and Figures viii

6 Chapter 1 – Introduction to the Project 1

1.1 Problem Statement 1

1.2 Project Objectives 1

1.3 Scope of the project 1

1.4 Organization of the report 2

7 Chapter 2 – Company Profile 3

2.1 Introduction 3

2.2 Vision 4

2.3 Mission 5

2.4 Operating Sectors 5

2.6 Organizational Structure 5

8 Chapter 3 – Research Methodology 6

9 Chapter 4 – Analysis 7

10 Chapter 5 – Findings and Recommendations 22

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11 Chapter 6 - Conclusion 24

12 Chapter 7 - Learnings 25

13 Chapter 8 - Challenges Faced 26

14 Chapter 9 - Limitations 27

15 Chapter 10 - References 28

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SR.NO List of Tables Pg.
No
1 Types of Sectors 2.1 6
2 Consolidated Income Statement 4.1 10
3 Consolidated Balance Sheet 4.2 11
4 Segment Results and Revenue 4.3 12
5 Income Statement of a Bank 4.4 13-14
6 Operational Metrics 4.5 15
7 Financial Model Profit and Loss Account 4.6 16-17
8 A Bank’s Profit and Loss Account 4.7 17
9 Financial Model Balance Sheet 4.8 19
10 Cash Flow from Operating Activities 4.9 19
11 Cash Flow from Investing Activities 4.10 19
12 Cash Flow from Financing Activities 4.11 20
13 Semi and Annual Balance Sheets 4.12 22

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SR.NO List of Figures Pg.
No
1 Types of Plans 2.1 4
2 BSE Front Page 3.1 8
3 Distribution of Revenue Graph 4.1 20
4 EBITDA Margins Graph 4.2 21
5 EPS Growth Graph 4.3 21

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 Chapter 1

Introduction to the Project

1.1 Problem Statement

Nowadays, everyone aspires to be a successful investor. However, it is extremely
difficult to do so without the proper tools. As a result, they need a middleman who can
consolidate all the information about a stock in one place in order to aid the process of
decision making. This data however, needs to be first presented in such a manner so
that it can be easily integrated in formats that are easier to understand for the potential
investor.

1.2 Project Objectives

• Update the quarterly results of the various companies for the fourth quarter of
the financial year ended 2023.

• Complete the Cash Flow models for companies in multiple sectors ranging
from Pharmaceutical, Healthcare, Banking and Automobiles.

• Update half yearly and full yearly data for the Consolidated Balance Sheets for
various companies across multiple sectors from the financial year ended 2018
till the most recent data available.

• Build financial models as per the company’s requirements.

1.3 Scope of the Project

The project focused on the various Indian companies listed on the Bombay Stock
Exchange primarily in the Healthcare, Pharmaceutical, Banking and Automobile sector.
The functional scope of the project was to provide accurate data models to be integrated
into the website.

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1.4 Organization of this report

The report is starts off with a brief Introduction about the project. The report further
includes details about the company, the work involved and the various learnings from
the work. It also includes the findings made during the duration of the project. The
remainder of the report includes certain limitations faced during the internship and
references utilized during the tenure of the internship and in the making of this report.

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 Chapter 2

Company Profile

2.1 Introduction

DistrictD provides first of a kind access to institutional investing resources and tools to
everyone. Founded in 2016 by Udit Garg and Vikas Chand. Their aim is to
revolutionize the way you analyze your investments. Their Web Platform allows you
to access all relevant data, financial models, portfolio allocations and analysis tools on
the go.

The company offers services in three tiers. The first one being a basic plan that is free
and provides the least number of resources. The next tier is the “Active Investor” plan
which is paid. This plan offers comparatively more features but not all of them and the
final tier is known as the “Pro Investor” which provides all the features available for
utilization. An interested user can choose to subscribe for a period of one month, or six
months or for the entire year. Here is a snippet of the various plans the company offers.

Fig: 2.1

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DistrictD provides financial data for over 800 Indian companies across the across IT,
FMCG, Oil, Pharma, Automobiles, NBFC, Media, Telecom, Paints, Retail, and Cement
sectors. They continue to add features and companies to the platform.
Here is a visual spread of companies the platform covers. Each box represents a
company and its market share.

Fig: 2.2

2.2 Vision

“To create a trustworthy and transparent community platform that allows an

individual to do equity research like a professional.”

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2.3 Mission
“To revolutionize the way people, analyze their investments and provide the
necessary investment tools for everyone.”

2.4 Operating Sectors

The company pools all the data for various companies that an investor might need
for analysis and decision making. They have a database of companies in various
sectors such as healthcare, pharmaceutical, automobiles, banking and much more.
Here is a list of all the sectors the company website covers alongside their subsectors.

Table: 2.1

2.5 Organization Structure

The company has a simple organization structure. It includes a CEO, a CFO a CHRO,
Senior Business Analysts, Junior Business Analysts and Sales Manager and a Customer
Relationship Manager.

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 Chapter 3

Research Methodology
In order to understand how the system works in the organization, it was essential that
I took a look at the entries made at the back end and how exactly they were made so
as to maintain consistency in the entire ordeal which would make it easier for the
customer. I got to know about how certain elements within the financial statements
are added and clubbed and which elements are supposed to be separately entered in
the backend. Most of the data regarding the various companies was either collected
from the companies’ websites or from the official website of the BSE also known as
the Bombay Stock Exchange.
Once the data pertaining to the correct time period was secured, it was then used as
input in the backend of the section known as “Quarterly Results” on the website as
well as in the company’s financial model excel file.

There were three tiers of work within the organization based of levels of importance.
The first level was updating the quarterly results of the list of companies, then after
that completing the financial models and finally updating balance sheet from 2018
onwards till the current period.

Fig: 3.1
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 Chapter 4

Analysis
The work at District-D can be bifurcated into three tiers of importance. The tier
would be filling the quarterly results of the various companies that released them for
the financial year ended 2023. The quarterly results were filled in different fashion
depending upon the type of company. If the company was from the healthcare or
pharmaceutical sector then the values from the income statement were written as
they are with extraordinary adjustments and minority interest being adjusted in the
“Extraordinary Items” head.

The data for the same was taken from the quarterly results as found in the Bombay
Stock Exchange website or the company’s own website, wherever it was available
first. The data is produced in such a manner that it is easier for the investor to derive
all the information that they need. The quarterly data itself is available for standalone
as well as consolidated variants of the balance sheets as well as the standalone and
the consolidated versions of the income statement. Here is a snippet of what it looks
like on a dashboard with an example of the Divis Laboratories company.

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Table: 4.1

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As we can see here the user has ample amount of information from quarter to quarter
to conduct their analysis. They can compare various elements within the income
statement as absolute figures as well as in terms of percentage to aid in their decision
making. For further analysis they can even look at the balance sheets.

Table: 4.2
Users can also analyze the company based on their segmental revenue. This information
is also available in the quarterly results which is then uploaded onto the company
website. Here is a snippet from the dashboard of the company Apollo Hospitals.
Segment Revenue and Segment Results are provided year on year in order to aid the
analysis and decision making of the consumer. Here is a snippet from the same.

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Table: 4.3

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Different sectors have a different way of presenting their quarterly results. The Banking
sector presents its Income Statement in a different manner as compared to the
Healthcare and Pharmaceutical sectors. The interest earned is stated first followed by
the interest expense to provide the net interest earned.

The process of entering the data is also different for the banking sector as expenses and
provisions are entered with a negative sign, this was not the case for companies
belonging to other sectors where data was entered as it is. A major chunk of the revenue
also came under the category of “Other Income” as only the Interest element had a
designated identity line. Also, there is additional information present such as details
about capital and Non-Performing Assets as they are unique in terms of presentation in
the banking sector.

Here is a table detailing some of the quarterly results for the Punjab National Bank. We
can view the elements and how they are presented for the consumer’s aid.

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 Table: 4.4

The website also provides a table called “Operational Metrics”. The details of these
numbers are found in the quarterly investor presentations that are released by the banks.
These include details such as growth in advances, growth in deposits, growth in the
number of branches, the number of ATMs and the growth in the various sectors whether
they are retail or MSME. Information about Non-Performing Assets, the Tier 1 and Tier
2 capitals as well as details of slippages and write offs are also provided. This
information is added as is without any changes in signage. Here is a table for the
quarter-on-quarter operational metrics for the Punjab National Bank.

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 Table: 4.5

Filling the Financial Models.

The next stage of work at District-D involved completing financial models. Work
primarily revolved around filling models for the Healthcare, Pharmaceutical and
Banking sectors. Design of the models were similar for the Healthcare and
Pharmaceutical companies but differed for the banking sectors. The model involved the
consolidated versions of the Profit and Loss account, the Balance Sheet and the Cash
Flow statement.
Values were plugged in entirely for the Profit and Loss account which were then linked
to certain elements in the Balance Sheet and the Cash Flow Statement. The remaining
values were plugged in manually. Information and data were taken from annual reports,
quarterly results and investor presentations taken either from the company’s own
website or the official Bombay Stock Exchange website.

The Profit and Loss account in the models would usually involve actual and percentage
change from year to year as well as estimates for three further years. These were arrived
by doing analysis by the senior analysts. The layout is what would be for a regular

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income statement with additional information about the diluted earnings per share and

its growth in percentage as well as the return on equity, the book value per share as well
as the adjusted profit after tax.
Additionally, bifurcation of revenue between domestic and international sales and other
operating revenue and reported revenue.

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 Table: 4.6

This Income statement is presented differently in case of a bank with details such as
Retail Brokerage, Institutional Brokerage and Distribution growth provided. Other
details such as the active client base as well as the AUM growth is also provided. The
rest of the details are more or less similar to the generic models.
The banks also have a Balance Sheet in the model that is linked to the profit and loss
account however, the cash flow statement is considered lacking in relevance for
conducting the analysis process and as results are not included in many company
models in the banking sector. The following is a snippet of how the Revenues are
displayed in the financial model for a bank.

Table: 4.7

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The Balance Sheet

The balance sheet is presented in such a manner where property plant and equipment
as well as intangible assets are clubbed together whereas capital work in progress and
intangible assets under development are clubbed together. Short term Investments are
clubbed together with cash and bank balances in the cash and cash equivalents heading.
Other elements of the model include Current Assets, Long Term Assets, Other long-
term liabilities (These include the minority interest), current liabilities and equity.

Here is how the balance sheet is presented in the model. This is linked to the income
statement presented in table 4.6.

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 Table: 4.8

Cash Flow Statement in the model is created in the indirect method. Started with EBIT
which is linked from the income statement and then followed by the taxed paid which
are manually plugged in from the yearly results. This is then followed by the changes
in working capital. This gives us the cash flow from operations. Here is how the cash
flow from operations look for the model with the income statement in 4.6.

Table: 4.9

The cash flow from investing activities includes “Other Income” which includes interest and
dividend income followed by “Capex” which includes the buying and selling of property,
plant and equipment. This is followed by change in investments and change in long term
assets. At long last we have other miscellaneous items.

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 Table: 4.10

The cash flow from financing activities includes finance costs, the dividend paid and the
change in debt. These are manually plugged in from the annual reports. This is followed by
change in equity, long term liability and miscellaneous items.

Table: 4.11

These models once completed are integrated into the website in order to generate multiple
graphical representations. The data can be used to generate multiple graphs such as Segment
Revenue, Costs Segment, Earnings per Share and Assets Chart. Visual representation of
tabular data aids the consumer to better analyze where they want to invest.
Here are some snippets of how the graphs look like from the income statement above.

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 Figure: 4.1

Figure: 4.2

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 Figure: 4.3

Historical Updating of Balance Sheets.

Certain companies did not have historical balance sheet data. When results were uploaded
and the models were completed, this historical data was supposed to be uploaded to the
website from 2018 onwards. The data was taken from the half yearly and annual results. The
companies involved belonged to various sectors such as Health care, Pharmaceutical,
banking, financial services and asset management companies. Here is a snippet of how the
balance sheet looks on the website. The company belongs to the pharmaceutical sector
known as Divis Labs.

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Table: 4.12

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 Chapter 5

Findings and Recommendations

The main findings from this Internship project can be mainly alluded to the extreme
importance of accurate data for the purpose of analysis. Raw data provides the most
accurate and reliable representation of information. It contains the precise
measurements, observations, or records that were collected in aggregation. This helps
the investor ensure the integrity and rely on the information they are analyzing .
Mistakes in the entry of raw data can cause the investors to make wrong observations
and analysis. When a customer buys a subscription to use the various features of
District-D, they do it because they are trusting the data that is produced on the website.
So, it is extremely essential that the data uploaded is accurate.

I also understood the importance of financial modelling and how to make models.
Financial models play a significant role in financial analysis by providing a framework
to conduct proper analysis about the various aspects of a business. They help in making
informed decisions, forecasting outcomes, and assessing the financial health and
performance of an organization. Companies of different sectors require s a different
build of the model. I understood how to make models for the Healthcare, Pharma,
Banking and Asset Management Companies.

An investor is given various tools to help in his decision-making regarding investments.

But it was eye-opening to realize exactly how much actually goes on in the process of
analysis. An investor has to consider things such as the company’s performance, their
financial health, the industry, the management, growth opportunities, whether the
company has a competitive advantage and many more.

An investor also looks at the risk tolerance, whether the company is diversifying, their
valuation. And it is important to note that all of this is just some common factors most
investors look for. One must also comprehend that despite all these, investors also have
different criteria or preferences based on their investment strategies.

As far as recommendations are concerned, I would suggest the company improves its
backend interface to ensure the smooth installment of data on the website. I personally
faced many glitches while updating data and often times the data would need to be

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entirely redone. This would waste time and affect efficiency and can not only affect the
accuracy of data but it would also cause the investors issues as they would expect the
fresh data to be on the website the day after the companies release their results. A
glitchy interface holds the worker back.

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 Chapter 6

Conclusion
In conclusion I would say that District-D as a company does a tremendous job of
providing a platform for people who are interested in investing to become a professional
investor. The database that the company provides is absolutely robust and accurate. The
investor has an array of resources to conduct accurate analysis and improve their craft
as an investor. We saw that the main work involved building and finishing financial
models across various sectors. We understood how companies in different sectors
represent their data differently. We learnt how companies release their quarterly results
which can be taken from the company’s website and the Bombay stock exchange
website.

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 Chapter 7

Learnings
I learnt a lot from my time in District-D. I learnt how to build and complete financial
models. I learnt how financial models are necessary for Decision Making, Forecasting,
Valuation, Risk Assessment, as well as capital raising. I also learnt about the contents
and importance of an investor presentation report. When it comes to the investor
presentation, we learn how important it is from the point of view of capturing investor
attention. It serves as the first impression for potential investors.

An Investor Presentation explains the company’s working business model, market

share and competitive advantage. It also highlights the projections of the corporations.

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 Chapter 8
Challenges Faced

The Summer Internship project for me was work from home. Despite this, there was
no problem with communication between me and my project head and data acquisition
and availability. However, to name a few, following were some of the challenges
faced:

Some of the data was missing in the excel sheet for various models or it was not
consistent with company policy. I had to make all the previous data consistent which
resulted in wastage of time. However, this did not affect the project in any manner.

The website had a lot of issues. At times the data would not get saved into the website
and as a result I had to keep on re-entering in to the system. This led to a lot of wastage
of time and took focus away from doing other work such as finishing models for
companies.

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 Chapter 9
Limitations

When it comes to limitations in the work, I felt that a lot of the work was a bit
monotonous. However, it helped me become more disciplined and more perfect at
doing the job. I became more efficient in doing my tasks and was as a result able to
do more and more work especially in a hectic time period where companies were
releasing their quarterly results for the financial year ended 2023.

Another limitation would be not being able to participate in the forecasting part of
the model. That was done by senior analysts. However, it seems that the forecasting
is either done by looking at the average or by using the percentage of sales method.
It would have been prudent however to know how the company did it officially.

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 Chapter 10

References

The official website of District-D https://districtd.co/app/

The official website of the Bombay Stock Exchange https://www.bseindia.com/

The official website of the National Stock Exchange: https://www.nseindia.com/

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